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Gazprom and Shell expand cooperation on Sakhalin-2 project - Alexander Novak - EastRussia | Far East

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Gazprom and Shell expand cooperation on Sakhalin-2 project - Alexander Novak

Shell may take part in the development of the South Kirinsky field that has fallen under the sectoral sanctions of the United States on the Sakhalin shelf, Russian Energy Minister Alexander Novak told journalists.

"Indeed, today an agreement was signed to jointly implement the project for the construction of a gas liquefaction plant between Gazprom and Shell. The agreement implies the construction of a plant in Ust-Luga with capacity from 5 to 10 million tons per year. Specific parameters for participation in the project will be stipulated in the preparation of the contract. It is assumed that, of course, Gazprom will use gas. Shell will use technologies, including those technologies used in the Sakhalin-2 project, the official said.

"This project is being considered in a complex for cooperation between Gazprom and Shell, including the construction of the third stage of the LNG plant for the Sakhalin-2 project, and also in the framework of the joint development of the South Kirinsky field. This was agreed in 2015 year. These are old arrangements - not today. A year ago, these agreements were reached when it was decided to build the third stage of the plant on Sakhalin. Shell is interested in implementing a joint project, and in this direction the parties are discussing, "A.Novak said.

"The total investment in these projects is more than 13 billion dollars," he added, Interfax reported.